PUBLIC TRUSTEE

The Hon. A. BRESSINGTON (15:07): I seek leave to make a brief explanation before asking the minister representing the Attorney-General questions about the practices of the Public Trustee.

Leave granted.

The Hon. A. BRESSINGTON: A constituent has approached me concerning the case of a very level-headed young 15 year old, who has the opportunity to set himself up for the future. This young man recently lost his godmother in a tragic motor vehicle accident. Prior to her passing, she bequeathed in her last will and testament one-third of her estate to her godson, which was nearly $90,000.

Her will appointed the Public Trustee as the executor and required the Public Trustee to hold in trust his portion until he reaches the age of 21. His plan for his future is to purchase a piece of land adjoining his parent's property in Murray Bridge. This land is currently for sale and reportedly holds excellent development potential, with the possibility of subdivision.

Seeing this potential and the future benefit for him, his parents and grandmother approached the Public Trustee about using a portion of the money held in trust, which now amounts to over $135,000, to purchase this land. It is important to note that, if the Public Trustee did purchase this property, it would still remain part of the trust until he turns 21.

However, the Public Trustee, in response, has refused to allow the purchase of this land, as it does not consider it a prudent investment and stated in a letter it was not authorised to purchase property for investment purposes. This is despite the fact that the will provides the Public Trustee with the discretionary powers to apply the funds in the trust as it sees fit and the purchase would otherwise be compliant with its obligations under the will and the Public Trustee Act 1995.

The grandmother, who is advocating in this matter, reports that, despite providing other examples of where property has been purchased by the Public Trustee and highlighting the sound investment prospects afforded by this parcel of land, she has been treated with contempt. She believes that the Public Trustee is acting as though the money held in trust for her grandson is actually theirs. My questions are:

1. Will the Attorney-General confirm that the Public Trustee is afforded the discretion by the proforma wills and by the Public Trustee Act 1995 to take into consideration the purchase of property, particularly when there are valid reasons for doing so and, as such, the once in a lifetime opportunity of purchasing land with potential for future development?

2. In this period of financial insecurity, how can the Public Trustee justify saying that it is not a valid purchase when it is a solid asset, such as land, in the booming city of Murray Bridge and how could it not be considered prudent?

3. Given that there is now a sufficient amount available in the trust to both purchase the land and still meet the Public Trustee's obligations, will the Attorney-General inquire into why the Public Trustee refused to consider purchasing this property?

4. Why has the Public Trustee imposed a condition that bequests be held in trust until the beneficiary attains the age of 21 instead of 18, the age of legal maturity?

5. Will the Attorney-General inquire into the perceivable level of self-interest in the Public Trustee's refusal to invest in this property?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Industrial Relations, Minister Assisting the Premier in Public Sector Management) (15:10): The honourable member has raised a number of questions. I would have thought that the latter question about whether the age should be 18 or 21 is probably a matter for this parliament ultimately to settle. That is something that perhaps the Attorney can contemplate, and I will refer the question to him.

I am sure that, if the Public Trustee did make an investment that subsequently lost money, we would have people roundly condemning it for that course of events. Obviously, the Public Trustee will have to take a conservative attitude towards investment; it is really required to do so. The honourable member raised a question of policy, and I will refer that to the appropriate minister—the Attorney-General—for his consideration.